Italicized text includes proposed additions to law or the previous version of the bill.Struck text includes proposed deletions to law or the previous version of the bill.

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CHAPTER 183
FILED WITH SECRETARY OF STATE AUGUST 27, 2012
APPROVED BY GOVERNOR AUGUST 27, 2012
PASSED THE SENATE JULY 6, 2012
PASSED THE ASSEMBLY AUGUST 9, 2012
AMENDED IN SENATE JUNE 6, 2012
AMENDED IN ASSEMBLY JANUARY 24, 2012
AMENDED IN ASSEMBLY JANUARY 4, 2012
AMENDED IN ASSEMBLY MARCH 31, 2011

INTRODUCED BY Assembly Member Valadao

FEBRUARY 15, 2011

An act to amend Sections 44272.3 and 44272.4 of the Health and
Safety Code, relating to ethanol.

LEGISLATIVE COUNSEL'S DIGEST

AB 523, Valadao. Ethanol: Alternative and Renewable Fuel and
Vehicle Technology Program.
Existing law establishes the Alternative and Renewable Fuel and
Vehicle Technology Program, administered by the State Energy
Resources Conservation and Development Commission (Energy
Commission), to provide to specified entities, upon appropriation by
the Legislature, grants, loans, loan guarantees, revolving loans, or
other appropriate measures, for the development and deployment of
innovative technologies that transform California's fuel and vehicle
types to help attain the state's climate change goals. Existing law
specifies certain alternative and renewable fuel projects to develop
and improve alternative and renewable low-carbon fuels, including
ethanol, are eligible for funding. Existing law, until July 1, 2013,
establishes requirements for biorefiners to receive loans from the
California Ethanol Producer Incentive Program.
This bill would provide that on and after July 1, 2013, the
eligibility for funding of projects for the production of ethanol is
limited to projects for the production of ethanol that are not
derived from corn, except as provided.

THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

SECTION 1. Section 44272.3 of the Health and Safety Code is
amended to read:
44272.3. (a) It is the intent of the Legislature that, to the
maximum extent feasible, loan moneys provided by the state to
refiners of biofuels, also known as biorefiners, be awarded so as to
increase the efficiency and environmental sustainability of biofuel
production.
(b) In order to reduce the carbon intensity equivalent value of
the fuel that biorefiners produce, biorefiners receiving loans from
the commission's California Ethanol Producer Incentive Program,
established under the authority of this chapter, shall meet all of
the following requirements:
(1) Within six months of acceptance to the program, biorefiners
shall submit a draft plan to the commission that details one or more
projects that can be undertaken at the biorefinery that are designed
to achieve compliance with either of two biorefinery operational
enhancement goals established by the commission.
(2) Within 12 months of acceptance to the program, biorefiners
shall submit a detailed cost estimate for their target projects that
can be undertaken at the biorefinery and that are designed to achieve
compliance with the commission's enhancement goals.
(3) Within 24 months of acceptance to the program, biorefiners
shall complete and obtain all of the necessary permits or negative
declarations sufficient to allow the project to move forward with
financing, major equipment purchases, and hiring if project approval
is executed by the company's officers.
(4) Within 36 months of acceptance to the program, biorefiners
shall obtain all of the necessary financing and initiate construction
for their project associated with their elected enhancement goal
pathway.
(5) Within 48 months of acceptance to the program, biorefiners
shall complete all modifications to the facility and begin modified
operations that achieve compliance with either of the enhancement
goal pathways selected by the project applicant.
(c) This section does not limit the commission's ability to set
more stringent guidelines for the California Ethanol Producer
Incentive Program that further maximize the efficiency and
environmental sustainability of biofuel production.
(d) This section shall become inoperative on July 1, 2013.
SEC. 2. Section 44272.4 of the Health and Safety Code is amended
to read:
44272.4. (a) Notwithstanding subdivision (d) of Section 44272.3,
on and after June 30, 2013, a biorefiner receiving loan moneys from
the state pursuant to an appropriation made in the 2010-11 or 2011-12
fiscal year shall comply with all conditions established pursuant to
Section 44272.3 and shall demonstrate that compliance to the
commission.
(b) On and after July 1, 2013, the eligibility for funding,
pursuant to paragraph (1) of subdivision (d) of Section 44272, of
projects for the production of ethanol is limited to ethanol that is
not derived from corn. This limitation does not apply to ethanol
derived from corn stover, leaves, cobs, or other nonedible plant
portions of the corn.